FixedFloat Hit by Repeat Hack, $3 Million Swiped; Tether Freezes Stolen Funds

FixedFloat cryptocurrency exchange has been exploited once more by the threat group responsible for a previous $26 million hack. Blockchain security firms detected suspicious activity early Tuesday, with $2.8 million withdrawn from FixedFloat's Ethereum hot wallet. The funds were transferred to a suspicious address and exchanged for ETH before being sent to the eXch exchange. FixedFloat confirmed the attack and attributed it to a vulnerability in the services provided by a third party. The exchange assures users that the exploit affected only company funds and did not compromise user funds. Stablecoin giant Tether blacklisted seven wallet addresses that received funds from FixedFloat, totaling $280,000 in USDT.

FixedFloat Hacked Again: $3 Million Stolen, Tether Blacklists Addresses

In a disturbing twist of events, cryptocurrency exchange FixedFloat has been targeted once more by the same threat actors responsible for a previous hack in February that resulted in the theft of $26 million worth of Bitcoin and Ether. Security experts and blockchain analysts have been closely monitoring the exchange's activities, and multiple suspicious transactions were flagged early Tuesday, raising red flags.

Cyvers Alerts, a renowned blockchain security firm, reported the alarming withdrawal of a staggering $2.8 million from FixedFloat's hot wallet on the Ethereum blockchain. The funds were swiftly transferred to a suspicious address that engaged in a series of cryptocurrency swaps, converting FixedFloat's assets into ETH before funneling them into the eXch exchange.

CertiK, another leading blockchain security provider, has estimated the total losses from the exploit at around $3 million. The company noted that FixedFloat's website was experiencing technical difficulties, indicating ongoing efforts to address the situation.

FixedFloat has since confirmed the attack, acknowledging that the perpetrators behind the February hack were once again involved. The exchange's statement highlighted its team's efforts to repel some of the attacks but expressed regret that the attackers had exploited a vulnerability in a third-party service that FixedFloat relies on.

Reassuringly, FixedFloat emphasized that the financial losses were limited to the company's own funds and did not affect user assets. An ongoing investigation is underway, but no further details have been released as of yet.

In response to the latest attack, Tether, the issuer of the widely used USDT stablecoin, has blacklisted seven wallet addresses that received a total of $280,000 from FixedFloat. PeckShield, a system vulnerability analysis and malware defense firm, identified these addresses and reported their involvement in the exploit.

FixedFloat's second breach within a short period raises concerns about the security of cryptocurrency exchanges. In February, the exchange suffered a $26 million loss in BTC and ETH, with the company stating that the attack was not perpetrated by its employees.

The cryptocurrency industry has witnessed a surge in security incidents in recent weeks, with liquid staking protocol Prisma Finance falling victim to a $11.6 million exploit. The protocol's attacker has demanded a public apology and the identification of the development team as a means of restoring trust.

SlowMist, a blockchain security firm, has reported that the web3 ecosystem experienced security incidents resulting in losses of $139 million in March 2024 alone. Insider malfeasance and smart contract vulnerabilities have been identified as significant factors contributing to these incidents.

The repeated targeting of cryptocurrency exchanges and the escalating losses highlight the need for robust security measures and ongoing vigilance within the industry. As web3 and cryptocurrency adoption continues to grow, ensuring the safety of user funds and the integrity of the ecosystem becomes paramount.